Machesney Park to weigh update to purchase policy

MACHESNEY PARK — Village President Tom Strickland and his administration may get the power to make more expensive purchases without board approval.

Kevin Haas

MACHESNEY PARK — Village President Tom Strickland and his administration may get the power to make more expensive purchases without board approval.

What’s next

The proposal will go before the Administration and Finance Committee at 6 p.m. Dec. 7 at Village Hall, 300 Machesney Road.

A proposal that will go before the village’s Administration and Finance Committee on Dec. 7 would allow purchases of up to $20,000 to be handled in house. Current policies require the village to go to the formal public bid procedure for anything more than $2,500.

Village officials say $2,500 doesn’t reflect the reality of current prices and that changing the policy will be more efficient and economical.

The code that calls for all purchases more than $2,500 to require a public bid was written in 1994, according to the village code book. That’s equivalent to more than $3,500 today.

Formal bid procedures include the requirements of publishing a legal notice in the newspaper and a public bid opening. The cost of the process, which includes advertising, staff time, a bid meeting, creating documents and attorney review, can average around $2,000 alone, said Bob Mullins, director of finance and administration for the village.

“It doesn’t take long to run up several hundred dollars even on a simple item,” he said.

Officials say it doesn’t make sense to spend that kind of money on small purchases.

“We’re spending a lot of money (even) when we’re not making major purchases,” said Karen Lemmons, director of community development for the village.

By comparison, the city of Loves Park requires formal bidding procedures for purchases more than $2,500. But the Loves Park code also allows City Council to waive the requirement and allow department heads to negotiate bids outside of the formal process.

Loves Park Mayor Darryl Lindberg said counsel is asked to waive the bid procedure for minor purchases where it is more economical to avoid the cost of a formal bid.

Reach staff writer Kevin Haas at khaas@rrstar.com or 815-987-1354.

Breaking down village’s purchase power

Current policy
Petty cash: For a payment of less than $50 and only when necessary.

Less than $500: Requires written approval of department head, but may not require competitive quotes.

$500 to $2,500: Requires staff to seek competitive quotes and written approval of department head.

More than $2,500: Requires formal public bid procedure and final approval by the Village Board.

Proposed policy
Petty cash: For a payment of less than $200 and only when necessary or emergencies.

Up to $2,500: Purchase can be made in open market with department head approval.

$2,500 to $20,000: Requires three written quotes, but not formal public bid procedure. Copies of the quotes must be kept on file. Purchase requires approval of village president and director of administration and finance.

$20,000 and more: Must be competitively bid through the formal public bid procedure.